EXCISE TAX REGISTRATION & ADVISORY

The Registration for Excise Tax in the UAE started on 17th September 2017.
Excise tax is levied on specific goods referred to as “excise goods,” which are typically harmful to human health or the environment. Following definitions apply to determine whether a product is an excise good:

  1. Carbonated drinks comprise any aerated beverage except for unflavored aerated water. Carbonated drinks also include any concentrations, powder, gel, or extracts intended to be made into an aerated beverage.
  2. Energy drinks comprise any beverages which are sold or marketed as an energy drink and containing stimulant components that provide physical and mental stimulation, which includes without limitation: caffeine, taurine, ginseng, guarana and any substance that has a similar or identical effect as the aforementioned substances. Also, any concentrations, powder, gel, or extracts intended to be made into an energy-boosting drink are considered to be energy drinks.
  3. Tobacco and tobacco products comprise all items listed within Schedule 24 of the GCC Common Customs Tariff.
  4. As at 1st December 2019, excise tax also encompassed the following items:
  5. electric smoking devices and tools
  6. liquids used in smoking devices and tools
  7. sweetened drinks

Rate of excise tax

As per UAE Federal Decree Law No. 7 of 2017 on Excise Tax registration for excise tax is mandatory for any business engaged in excise goods and has the following rates:

  1. 50% on any product with added sugar or other sweeteners.
  2. 50% on carbonated drinks
  3. 100% on electronic smoking devices
  4. 100% on liquids used in smoking devices and tools
  5. 100% on tobacco products
  6. 100% on energy drinks

Required Documents Excise Tax Registration

  1. Valid Trade License / Business License.
  2. Passport / Emirates ID of the authorized signatory.
  3. A copy of the legislation that establishes the entity in case the registration request was in relation to a federal / local government entity.
  4. Proof of authorization for the authorized signatory.
  5. Official declaration, on the entity’s printed letterhead, signed and stamped by the authorized signatory, stating the entity’s activity in relation to goods subject to Excise Tax, in addition to the activity type (production, import, stockpiling) and the start date of the activity.

How can we support you?

We take pride in being counted as top FTA Approved Tax Agents in UAE for a wide array of satisfied clients across the UAE. Our tax experts provide excellent all round Taxation Services in the UAE and are versed with Excise Law and Regulations to support and guide the business community to register for Excise Tax as well as advisory service to ensure compliance with the Excise Law.